* Yuan has worst day since March 25
* Euro relatively stable, sterling gives back gains
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Recasts, adds new comment, latest news)
By Olga Cotaga
LONDON, May 1 (Reuters) - The Chinese yuan fell to a
one-month low versus the dollar on Friday, a day after U.S
President Donald Trump accused China mishandling the outbreak of
the novel coronavirus and threatened new tariffs on Beijing.
Trump said on Thursday he believed the virus may have
originated in a virology lab in Wuhan, the Chinese city where
the outbreak began. The Chinese state-backed Wuhan Institute of
Virology has dismissed the allegations, and other U.S. officials
have downplayed their likelihood. The Chinese yuan fell in the offshore market by 0.7% to
7.1350 versus the U.S. currency, its lowest since April 2
CNH=EBS . On Friday the yuan fell to its lowest since March 25.
"Given the scale of the COVID-19 impact there is certainly a
high risk of geopolitical tensions escalating considerably as
lockdowns reverse," said Derek Halpenny, head of research at
MUFG.
"This would clearly be another hit to global trade that
would add a layer of dollar support going forward," Halpenny
said.
Another metric of market distress - the Australian dollar -
fell by more than 1% to 0.6438, its weakest since Tuesday
AUD=D3 .
The Canadian dollar also fell, by 0.5% to 1.4016 against the
greenback CAD=D3 .
Analysts attributed the moves to poor equity performance in
the United States.
"The late day fall in the S&P 500 diminished the market's
gains for the month and turned April from the best month since
October 1974 to the best month since January 1987," said
Marshall Gittler, a forex analyst at broker BDSwiss.
The euro stabilised against the U.S. dollar, having rallied
the day before to a two-week high on month-end flows and on news
that the European Central Bank will make loans to banks even
cheaper.
It was last up 0.2% at $1.0977 EUR=EBS .
Much of Europe was closed on Friday for the International
Workers' Day, as was much of Asia, but a new month brings a new
set of worries to investors as coronavirus infections rise to
3.3 million globally, claiming more than 230,000 lives.
The U.S. dollar was down against the Japanese yen as well,
trading down 0.3% at 106.88 yen JPY=EBS .
Elsewhere, sterling gave up some of the gains it made the
day before, trading down 0.2% against the dollar at $1.2566
GBP=D3 and by 0.4% against the euro at 87.34 pence
EURGBP=D3 .
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